Barry Cohen Sage     Posts: 6338 Joined: 1/19/2004  User Profile | The Relative Strength comparative indicator compares two securities to show how the securities are performing, relative to each other. Comparative Relative Strength is calculated by dividing one security's prices by a second security's price. This shows the relationship between the two securities. This indicator should not be confused with the Relative Strength Index, which was invented and named by Wells Wilder. This indicator offers insight into a security's bullishness or bearishness. If the indicator is increasing, it means that the stock is increasing in value faster than the market. If the indicator is decreasing, the stock is decreasing in value faster than the market. Generally, it is best to buy a stock when the Relative Strength indicator is increasing. The DSS Relative Strength ranks long trades based on the stocks that have the highest Relative Strength compared to the index. Short trades ranks based off of the lowest relative strength. Longs are sorted in descending order and shorts are sorted in ascending order. The Data parameter refers to open (O), high (H), low (L), close (C), or volume (V). By default RS uses Close or C. For instance, RS(7,"$SPX",1) is the exact same as RS(C,7,"$SPX",1) so you could base it off the open if you wanted to by using the letter O for open. | |
